ESG Report 2024

5.2 Risk Management The Group recognises the importance of risk management to ensure that business operations comply with relevant regulations. Accordingly, the Group has established a Group Risk Management Department, which is accountable to the Risk Management Committee under the Board of Directors. The Group's risk management process includes risk identification, risk assessment, risk response and risk reporting. The principal duties of the Risk Management Committee include reviewing the Company's risk management policies, examining the risk management systems of the Company and its subsidiaries, and ensuring that the management has fulfilled its responsibility to establish effective systems. In addition, the Committee is required to assess the risks of major decisions, consider solutions and provide guidance, regularly assess the Group's risk profile and management capabilities, and make recommendations for improvement. The Risk Management Committee is required to proactively conduct important investigations or undertake them as delegated by the Board. It should continuously oversee the risk management and internal control systems, checking their effectiveness at least once a year, and report the relevant review results to the shareholders in the “Corporate Governance Report”, covering key control areas such as financial, operations, compliance and risk management. Finally, it is also required to review other risk management responsibilities of the relevant committees as defined in the Listing Rules and to examine other relevant topics as determined by the Board. The Group Risk Management Department, as the executive body of the Risk Management Committee, is responsible for the subordinate risk management functional departments. This department conducts strategic risk tracking and management for the entire Group based on the its strategy, ensuring that the risk control management is in line with the Listing Rules and internal operational requirements. Its main duties include promoting and improving the Group's risk management system and processes, managing and reporting on significant risks, identifying and researching on emerging risks and completing other tasks assigned by the Risk Committee. 14 5.3 Business Ethics The Group has always been striving to establish a high-integrity and law-abiding corporate culture, and holds a “zero tolerance” attitude towards illegal behaviors such as bribery, extortion, fraud and money laundering. We strictly comply with the “Criminal Law of the People's Republic of China”, the “Anti-Unfair Competition Law of the People's Republic of China”, “Interim Provisions on Banning Commercial Bribery” and other related laws and regulations. We have entered into a statement of integrity, and have relevant rules and regulations for practicing integrity. We continue to conduct audits of all business segments of the Group and have established corresponding audit departments for different business segments. Aspects Criminal Law of the People’s Republic of China Anti-Unfair Competition Law of the People ‘s Republic of China Anti-Money Laundering Law of the People's Republic of China Interim Provisions on Banning Commercial Bribery Business Ethics The United Laboratories Code of Business Conduct The United Laboratories Employees’ Code of Integrity and Self-Discipline The United Laboratories Anti-Fraud and Whistleblowing Management Policy Statement of Integrity Anti-corruption Agreement Conflict of Interest Declaration and Management Policy Legal Department Integrity and Self-Discipline Guidelines Compliance Incident Reporting Policy The United Laboratories Measures for the Management of Compliance Review Code of Business Ethics and Conduct Procedures Anti-Corruption, Anti-Bribery, Prohibition of Drug Use, and Other Ethical Behaviors Management Procedure The United Laboratories Anti-Money Laundering Management Policy Relevant Laws, Regulations and Guidelines Internal Policies In order to cope with the development of the Group, the Group has established and continuously strengthened its institutional framework. It has implemented various internal systems for business ethics management, including “The United Laboratories Anti-Fraud and Whistleblowing Management Policy", “The United Laboratories Employees’ Code of Integrity and Self-Discipline", and "Code of Business Ethics and Conduct Procedures". These internal policies establish comprehensive requirements for all employees and stakeholders in areas such as anti-bribery, anti-corruption, and ethical conduct. Environmental, Social and Governance Report 2024 The United Laboratories International Holdings Limited